Autonomous aerial vehicle manufacturer EHang Holdings Ltd reported a second-quarter profit on an adjusted basis but fell short of revenue expectations as regulatory uncertainty in China delayed commercial passenger operations.
EHang's adjusted earnings per share came in at $0.38 for the three months ended June 30, beating the $0.72 loss forecast by analysts. Revenue totaled RMB 77.9 million ($11.1 million), missing the $132.96 million consensus estimate by 41.4%, representing a 31.3% year-over-year decline but a 203% increase from the prior quarter's RMB 25.7 million.
The company's stock slipped 1.15% in premarket trading to $5.14, extending declines from its 52-week high of $20.20. Gross margin remained stable at 61.2%, while adjusted operating expenses rose 16.9% year-over-year to RMB 112.7 million, resulting in an adjusted operating loss of RMB 62 million. Cash and equivalents stood at RMB 929.4 million as of June 30.
Management attributed the revenue shortfall to heightened regulatory scrutiny following a June accident involving a piloted light sport aircraft in China, which prompted authorities to adopt a more cautious approach toward low-altitude commercial operations. EHang withdrew its full-year 2026 revenue guidance of RMB 600 million, citing uncertainty around domestic passenger approvals, particularly for its Hefei project.
Despite the setback, EHang reported operational progress, delivering 35 EH216-S aircraft, one VT-35 aircraft, and 520 GD4 drones in the quarter. The company has conducted continuous internal trial operations in Guangzhou and Hefei for approximately 1.5 years, accumulating nearly 100,000 safe flights with a passenger satisfaction score of 4.94 out of 5.
Internationally, EHang advanced projects in Thailand, Hong Kong, Sri Lanka, and Mexico. Thailand expects an experimental flight permit in Q3 2026 and aims for commercial certification by year-end, targeting over 10 manned routes in Bangkok, Pattaya, Phuket, Koh Samui, and Tao Island. The company plans to deliver at least five EH216 units to each location next year and has shipped over 1,000 GD4 drones for light shows in Bangkok and Pattaya. Hong Kong selected EHang for the Low-altitude Economy Regulatory Sandbox X trial project, while Sri Lanka became the first adopter of its Global Fast Track Program.
EHang's global footprint expanded to 23 countries, with recent additions in Mexico and Switzerland. CEO Hu Huazhi emphasized that certification is merely the first step, with long-term success dependent on operational capabilities and standardized solutions. CTO Feng Chuai noted that stricter safety regulations ultimately benefit the company by reinforcing its unmanned fleet model.
